The power of III

Summum ius summa iniuria--More law, less justice

09 March 2011

Hoard nickels, silver, older pennies

For those of us mortal mundanes that don't have enough income to buy even the smaller amounts of gold, there are other ways of storing wealth in commodities: older and even current US coins.

The concept: commodities, which have a value in the marketplace for either manufacturing or as money itself, have been increasing in dollar value as the value of each dollar plummets.  This should be the way you think of it: hedge against inflation or the value of the coin.  

The beauty of the concept: even if the value of the coin drops to or below the face value, the coin still has the face value.

Right now, the value of a 1946-2011 nickel is greater than 5 cents, closer to 7 cents, because of inflation of the price of nickel.  

Older pennies from 1909-1982, made mostly of useful copper, are worth 2.8 cents now.  In 1983, pennies became 97.5% cheaper zinc.

Silver US coins from 1964 and older, are currently more than 2600% greater than face value, e.g. a silver dime from 1964 or before, is worth $2.60.

Your paper money in the bank loses value every day, every time the government does a "quantitative easing".  Change what you can into coinage and find a safe way to store it.

So follow Gresham's Law

Gresham's law is an economic principle "which states that when government compulsorily overvalues one money and undervalues another, the undervalued money will leave the country or disappear into hoards, while the overvalued money will flood into circulation." It is commonly stated as: "Bad money drives out good", but is more accurately stated: "Bad money drives out good if their exchange rate is set by law."

Check out current values of these coins, updated as the value of copper and silver fluctuate:

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